Saudi news thread

[HiJazzey]

post and discuss here any interesting economic/other news. No politics please.

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Bilad bank IPO

The big story of the moment. As ever with these major IPOs, there's been a frenzy. Subscription has reached a value of SR5.38 billion with subscription open until 9 March. Expect it to continue to rise.
Anyone here bought shares?

Financial market dispute board

As part of ongoing strengthening of regulation of the financial market, a specialist dispute board has been appointed headed by Dr. Mohammed AlMarzougi. The dispute board will enjoy far reaching powers and its decisions are binding.

World's largest phosphate plant to be built in KSA

alMa3aden is planning to begin development of the massive Jalamid phosphate deposit in northern Saudi Arabia at a cost of $1.9 Billion.

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[Saudi Dunes]

Jubail is set to become the region's largest industrial zone, with recent announcments of a planned Industrial park expected to attract 130 billion riyals worth of investments. The foundation stone for the massive project was layed by HRH Crown Prince Abdullah in mid-December. The project is to be layed out in four stages, witht the initial stage requiring 13 billion riyals in direct investment. The Jubail II Industrial City is expected to genrate more than 55,000 new jobs.

[HiJazzey]

Yeah Jubail II is huge.
Apparently they're also planning to turn Rabigh into a 3rd industrial city, after Jubail and Yanbu.

Welcome to the forum Saudi Dunes :)

[Olive touch]

Interesting articles Hijazzy and welcome Saudi Dunes. I like this name!

Bismillah! ~New Topic~

After the rain in Riyadh (flood)

One week ago Riyadh the capital of Arabia got heavy rain and it effected
some location of the city.

Each person showed his anger in his own career. I saw this Saudi cartoon
and thought to share:

http://www.alwatan.com.sa/daily/2005-03-01/Pictures/0103.nat.p8.n4.jpg

The Cartoon:

http://www.alwatan.com.sa/daily/2005-03-03/Pictures/caricature/0303.MIS.p36.n36.jpg

[DigitalTiger]

ahahhha nice one Olive!

[Jeddawi]

Salam,

Our economy is improving in a remarkable pace due to high revenues from high oil prices. Now, this is good for the short and maybe the medium term only. In very long terms, that is not a good sign, I think.

Many countries are highly investing in R&D to search for alternative energy sources due to these high prices. Now, obviously we are talking about somthing like 70- 100 years to find a replaceble source of oil. But, that will eventually happen, and the flourish we are enjoying mean time will no longer exist unless we have some other money outlets rather than oil.

I think that it is our best chance now than ever to attract foreign investments to our county mainly in heavy industry. Such projects are need, I think, to provide more job opportunities and to improve the infrastructure even more for Saudi.

regards, The Pianist

[Saudi Dunes]

Jeddawi, I wouldn't be very worried about this. If Western countries do decide to switch to alternative energy sources, it will take them over 50 years to make the transition. They will need to upgrade and redevelope their entire power production and distribution facilities. All their defense systems will have be gradually faced out. It would be an impossible task to do within 10 or 20 years. Especially in the west, because they need to sustain economic feasibility, and the workforce in the construction industry is very very expensive. Second of all I really don't think high oil prices have affected western economic development much. I mean the United States has posted a better that expected job creation in the last quarter, and the market seems to be in a rally. So as long as economic indicators are good, I don't think they will try to find different energy sources. Once the economy slows down, oil demand will decrease, while supply is still large, thus prices naturally will ease up.

[Saudi Dunes]

Olive Touch, LOL, LOL awsome cartoon

[SkyFan]

haha sad but funny cartoon

[Jeddawi]

Dear Saudidunes, thanks for ur reply.

As i said, that the switch from oil won't take place in near future. the point I was trying to make is that we should start thinking of additional sources of income, and we shouldn't be dependent on oil production. Yes, we should specialise on petrolume engineering as its the abandunt source we have, but not to be the only one. Our generation may not be see that, but surely there will be time when our oil will no longer be in need as it is now.

regards, The Pianist

[HiJazzey]

Yes we need to develop our economy into an industrialised first world economy. If you look at our non oil economy, we are distinctly 3rd world. A country with this much liquidity should have a much bigger economy. We have the capital, but we don't have the projects. We've got to the ridiculous extent that loss making companies are still making gains in the stock market instead of falling simply because there is little choice!
Our Petro-chemical industry is successful, but it isn't enough. We need to see growth and development in more diverse sectors.

Regarding oil, it's position in the world will decline, but it will be a slow gradual process. And even then, while it may be less valuable, there will still be a market for it. Look at coal, it's still in use today. Also, the most viable alternatives right now, are fossil based, like LPG and LNG. And don't forget, the middle east has the lowest extraction costs in the world, so we can survive under a lower price, unlike competitors like off-shore oil in the north sea etc...

[Saudi Dunes]

Jaddawi, and HiJazzy, both of you guys have good, and interesting points.

[DigitalTiger]

Well.... The oil represents the oil that the goverment makes only in fact the al-saud family only, The millionaires in saudi arabia who made their fortune form oil are only the members of the royal family and a few who like worked for al-saud, in which al-saud were the clients. all those make only 200 000, the rest are all self made! I konw a guy before saudi arabia he was a giant textile merchant, when al-saud came,etc. he went and invested in india, now he is one of the biggest millionaires in saudi arabia. in fact its like that in all the gulf! except Kuwait, Because the kuwaiti goverment when oil was founded they gave every citizen approx. 2 million now. and some built palaces and got bankrupt some invested! thought there is a few who became rich but the best example is Muhama Yusuf Al-Ghanim he is richer than Al-Sabah the ruling family!

[SkyFan]

Well.... The oil represents the oil that the goverment makes only in fact the al-saud family only
WHAT!!??
I can only name 4 ministries which are headed by a mameber of Al-Saud family out of around 20 ministries!!

I konw a guy before saudi arabia he was a giant textile merchant, when al-saud came,etc. he went and invested in india, now he is one of the biggest millionaires in saudi arabia.
What's his name?
I want to know the mysterious 'one of the biggest millionaries' in Saudi!!

in fact its like that in all the gulf! except Kuwait, Because the kuwaiti goverment when oil was founded they gave every citizen approx. 2 million.
2 million Dollars, Dinnars ??
Be specific, I'm attempting to call a Kuwaiti friend now.

Muhama Yusuf Al-Ghanim he is richer than Al-Sabah the ruling family!
Not true.

[Saudi Dunes]

Talking about ministries, I have a quick question....are the targets of the terrorist attacks being repaired? For example, the Ministry of Interior...was it fixed up after that incident back in December?? And the Al-Hamra Compound, Muhaya, Jadawel...are they being fixed or are they just leaving them??? I know Oasis in Khobar was fixed up right away, they even re-did the entire hotel tower where the hostages where helled and the helicopters landed. I really hope the other are also being fixed...it would be sad to lose such prestigious developments...My parents know a family that use to live in Hamra, the guy worked with Lucent, they moved out of Hamra 10 days before it was attacked. They were like "it was extreme luxury". They live in Chicago now, and I don't think they like it. They are trying to go back to the Gulf, I think Qatar.

[SkyFan]

I saw the minstry of Interior under rapid repairing about two weeks after the attack. I'm not sure if they are done repairing or not. All the compounds are already fixed. I am not sure what's the status of the Security Forces Training building.

[Saudi Dunes]

Cool :) :), thanx for the update SkyFan

[Saudi Dunes]

LOL LOL, I can't get enough of that cartoon, I just love how the people driving the car look....look at their eyes...LOL LOL its sooo funny.

[DigitalTiger]

WHAT!!??
I can only name 4 ministries which are headed by a mameber of Al-Saud family out of around 20 ministries!!


What's his name?
I want to know the mysterious 'one of the biggest millionaries' in Saudi!!


2 million Dollars, Dinnars ??
Be specific, I'm attempting to call a Kuwaiti friend now.

Not true.


your a real joke, you must go and find a joke forum cause maybe there you will have a career try www.justforlaughs.com

I said approx 2million dollars now! we use the US dollars cause it is the most used currency i could have said euros but everyone compares with the US dollars! not kuwaiti dinars or Saudi Riyals! stop dont make a useless comment please!

For the millionaires there is The Rajhi Family!
http://www.alrajhibank.com.sa/finPortal/published/aboutus/main.jsp?fName=ourjourney.htm

E. A. Al-Juffali Brothers
http://www.eajb.com/webapp/Juffali/

and the former textile merchant is Mohamad Saed AlDrees.

and there is many others!

and proove to me Al-Ghanim family isn't richer than Al-Sabah! Al-Ghanim's company was before the discovery of oil! his company was the first to bring Air conditioners, Refrigerators,etc. in the gulf!

[HiJazzey]

please guys cool it. We've already had 2 threads closed, we don't want this to close too.
Like I said in the first post, no politics please.

[Jeddawi]

I add my vioce to Hijaazi,

guys there is no point from what ur saying whether its true or not. All what ur causing is endless arguements. Instead, make suggestions to improve our country and economy.
thanks any way,
The Pianist

[Olive touch]

It is becoming too annoying now! Before it was nice and peaceful until some people joined and started to cause troubles. Now 2 of my threads been closed just for useless attitude.

بزوره إنتو? شغل التكرنه و الحونشية ما حتبطلوه? غاويين شكل و خلاص!!!!!

If you all want to fight about royalty or whatever there are hundreds of sites you can join and start insulting whomever you don’t like.

Thank you Hijazzy and Thank you Jeddawi for your great opinions and I think guys like both of you will keep my spirit high.

[HiJazzey]

http://aleqtisadiah.com/SiteImages/EqNews/4722.jpg

Meet Jeddah's new mayor: Savola group chairman Adel Faqeeh.
He takes over from Abdullah al-Mu3allami. He has a good reputation. People have high hopes for his tenure.

[SkyFan]

Olive touch,
I don't know who you accusing of trouble making in this forum but if you are pointing at me then allow me to defend myself.
I have NEVER insulted anybody nor posted any childish comment. I try to be polite and truthful in all of my posting and I only go off topic when someone else posts a reply which has nothing to do with the thread. In other words, I don’t start going off topic. Adding to that, I swear that my argument was never EVER about the royal family, it IS about truth or false information.

Guys,
I just have no tolerance towards full of hate people who post totally false information about my country. Anas (along with his other usernames) had not just attacked my country, he also lied in more than just one place. Just go back to his previous posts and notice how he goes straight to attack the royal family in unrelated topics. He skips commenting about construction and architecture and insists to bring up politics. My reaction to that is just to take action and reply politely and truthfully.

Anyways, if you still think that I am a “trouble maker” here, then all I have to apologize for any thing I did that made you think that.

[Olive touch]

I hope So Hijazzy. Al Ma’alami did a lot for Jeddah. I think both Al
Fukeeh and Al Ma’alami have great reputation. Now it’s time to change the
photo of AL Ma’alami in the gov site ;).

Skyfan: No I never pointed at you, in fact I like you :hug: .

[den2dxb]

I hope So Hijazzy. Al
Fuckeeh .

You may want to change your spelling of the new mayor. :eek2:

[HiJazzey]

SAGIA awards 13 insurance companies licences to operate in Saudi Arabia

Awarded companies are:

* AXA insurance (100 million SR payed up capital)
* BUPA Arabia (400 million)
* Tokyo Marine and Nishido (100 million)
* Global insurance (200 million)
* Saudi National insurance co. (100 million)
* United Saudi co-op insurance (200 million)
* Mediteranian and Gulf insurance, MED-GULF (600 million)
* Arabian Shield insurance (200 million)
* Saudi-Indian insurance (100 million)
* SAB takaful (100 million)
* Saudi-French insurance (100 million)
* Public takaful co (100 million)
* United co-op insurance co. (200 million)

Companies are required to put 25-40% of their shareholing to the stockmarket.

Zamil and Khaleej to list in SSE
The government has approved the application of 2 companies to convert to joint stock companies:
Zamil group, with $14 million capital
Khaleej Real Estate, $87 million

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There's more news, I'll post them later in the day

[Olive touch]

My goodness :uh: thank you den2dxb I cant believe I wrote it this way. I took the C from Fuckeeh. Thanks for the warning.

[SkyFan]

Maaden to Build the Largest Phosphate Plant in 2005

(Arab News), 29 February 2005 — A fertilizer complex with the largest fully integrated diammonium phosphate (DAP) plant in the world will be the upshot of the Bankable Feasibility Study (BFS) which was received today by the Saudi Arabian Mining Company (Maaden).



Maaden through the BFS will develop its Phosphate Project (valued at $1.9 billion) in Saudi Arabia based on the exploitation of the Al-Jalamid phosphate deposit. Following the project financing in 2005, the start-up is planned for late 2008. During the handover ceremony held in Maaden’s offices in Riyadh, Abdullah S. Busfar, vice-president for corporate projects, received the BFS from the Saudi Arabian Phosphates Consortium (SAPC), a group comprising of SNC-Lavalin Europe BV Branch (a member of the SNC-Lavalin Group of Companies) and Delta Catalytic Saudi Arabia Ltd. (a member of Jacobs Engineering Group).



Busfar said: “The project consists of a phosphate mine and a beneficiation plant at Al-Jalamid, in Northern Saudi Arabia, a fertilizer production complex at Ras Az Zawr, on the shore of the Arabian Gulf.”



The mining and beneficiation facilities at Al-Jalamid will produce an estimated 4.5 Mtpy (dry basis) of phosphate concentrate. The ore will be exploited by surface mining and processed by size classification and flotation to yield a concentrate containing 32 to 33 percent P2O5. The BFS has estimated that the Al-Jalamid reserves are adequate for providing ore beyond the 20-year life of the project, at an average mining rate of 11 to 12 Mtpy.

[SkyFan]

Ma'aden to establish a new company for gold- KSA


The Minister of Petroleum and Mineral Resources, Eng. Ali Bin Ibrahim Al Naimi has said that the Saudi Arabian Mining Co. "Ma'aden" is going to establish a new firm for gold, which will be publicly offered for general booking of shares some time later this year. The Minister was speaking to a press conference on the sidelines of the Symposium on Mineral Investment Horizons and Opportunities in the Arab Countries, recently held in Jeddah.
Eng. Al Naimi added that the gold company will be the first subsidiary followed by a phosphate company and a bauxite company. About the capital of the proposed gold company, he said that it is being evaluated and is till under consideration.
About the north-south railroad to transport raw phosphate ore to Jubail Industrial City, he said that the engineering designs of the project are ready now and tenders will be invited during summer this year.

[HiJazzey]

New pharmaceutical factory in Jeddah

The Abdulkhaleq Saeed group is planning to build a 600 million SR pharmaceutical factory in Jeddah. The project is being developed with the co-operation of an Indian company.

There are currently 4 pharmaceutical factories in Jeddah, 2 in Riyadh, and one each in Dammam and Buraida.

[HiJazzey]

Plans to offer granite mining concessions in Rania county

A government commitee has been formed to oversee the zoning of granite mine sites in Rania county in preparation to offer tham as concessions to the private sector. Rania county is located north of Taif and has vast quantities of commercially mineable granite.

[Saudi Dunes]

As of April, Saudi Arabia will have the Middle East's first fully operating Third Generation (3G) communications service. This cutting edge service is being rushed onto the market by the newly founded Etihad Etisalat (Mobily) Corporation. The company has also anounced that it would be giving its subscribers the chance to select customised phone numbers, among other benefits. The copany is expected to start full-fledged operations in mid 2005, and plans to revolutionise the Saudi telecommunications market, arguebly the fastest growing on the planet.

It was also recently announced that authorities have plans to introduce another Land-Lines communications provider 2 years ahead of schedule, thus ending STC's market monopoly. In addition, the launch of a third wireless communications provider is expected to be much more lax (in reference to the strict regulations and investor relations that were set in the launch of the second mobile service).

It seems the government is really pleased with the investor turn out in the latest IPO's

[SkyFan]

It's not the IPO turn outs that's making the government introduce another land lines communications provider 2 years ahead of schedule. The reason for that is because Saudi is trying to join the WTO. Having another land lines provider is one of economic changes that the US demands Saudi Arabia to do in order to sign the WTO agreement.

[Saudi Dunes]

Ohhh, I'm sorry for my ignorance, I wasn't aware of that. By the way, talking about WTO membership for Saudi Arabia, what seems to be the problem? I mean, didn't the enitre European Union OK Saudi membership? Why is it taking soo long for US approval?

[Anas Anani]

RIYADH, 21 March 2005 — Saudi Arabian food group Savola has agreed a one-for-four bonus share issue, funded by transfer of cash from reserves and raising its paid up capital to SR1.25 billion ($333 million), the company said yesterday. The bonus share issue, agreed at an extraordinary general meeting of shareholders on Saturday, took effect yesterday. The stock, which closed on Saturday at SR972, was trading yesterday in a range close to SR750. Savola’s net profit rose 67 percent last year to more than SR500 million, with total sales up 25 percent in the same period.

[Saudi Dunes]

In what has been described as the largest auction in the world, Al-Oula Developers will be selling land plots at the exclusive Nakheel development in Jeddah City. The auction is expected to fetch in the upwards of the 1 billion riyal range ($266 million). The newly established EMAAR Middle East has shown interest in purchasing in what amounts to 45% of the land plots. With its prime location in state-of-the-art infrastructure, Nakheel may become, as what has been described as "Jeddah's main business center". The auction, which starts at 5 p.m on Wednesday evening, is expected to draw a large crowd of local and international investors.

[Anas Anani]

45% of the land plots where exactly? Jeddah? thank you its not really that clear.

[HiJazzey]

the Nakheel project is basically some large plots of land where the old airport used to be, that have been divided up and zoned by al-Oula.

[Anas Anani]

i see thank you,

[SkyFan]

Saudi Arabia is safer than Nottingham, says envoy
By Richard Beeston and Liz Chong



THE British envoy to Saudi Arabia has suggested that security in the country has improved so much that it is now safer for a British businessman to visit a Saudi city than to go to Nottingham.
Sir Sherard Cowper-Coles, the British Ambassador, risked kicking up a diplomatic storm at home when he told an audience of several hundred people in the eastern Saudi city of al-Khobar an anecdote about a British expatriate worker visiting Nottingham.



“He was saying he felt completely ridiculous having to give British businessmen from Nottingham assurances about the security here when Nottingham is the murder capital of the UK at the moment,” he told a reception for the Queen’s birthday.

“It is far more dangerous, statistically, to be in Nottingham than to be in al-Khobar, Dammam or Riyadh.”

The remarks sparked an angry response from the Midlands city. Jon Collins, the leader of Nottingham City Council, said that his city had been unfairly stereotyped.

“People in positions of responsibility should be responsible about what they say and not get caught up in media hyperbole which is not only damaging to Nottingham but also unfair and unnecessary,” Mr Collins told The Times.

“Presumably, the ambassador has formed his view without having been to Nottingham, but if he cares to come here we’d be delighted to show him what a great place it is.”

Since Islamic militants started their campaign against the regime in Saudi Arabia two years ago 250 people have been killed, including six Britons. Two militants and two soldiers were killed in a gun battle near Mecca yesterday, and six soldiers were wounded.

Last year in Nottingham 13 people were murdered and this year so far 11 have been murdered.

Nottingham is reeling from a wave of gun crime and murders fuelled by its thriving drugs trade. Steve Green, the Chief Constable, has said his force is struggling to cope. More than 40 per cent of murders are “straightforward assassinations,” and the number of murders had risen by 30 per cent in 12 months, according to a government report.

Gang culture has shown no signs of abating, with the head of Nottinghamshire CID and his family moving to a secret address after gangsters put out a contract to kill him.

Certainly Prince Turki al-Faisal, the Saudi Ambassador to London, seemed convinced by the argument. “I have looked up the most recent figures on homicide and murder in the UK and for London alone the figures for one year far exceeded the number of people killed in Saudi Arabia over the past two years,” Prince Turki told The Times. “When you add the word terrorism to an act of killing, it gives it a magnified dimension.”

[HiJazzey]

He he. But you know, all those barriers do make the country look scary.

Anyway, I've just noticed that nobody here has posted anything about Dammam Technology Zone. Massive project!

[SkyFan]

Dammam Technology Zone!!
Is that a new project??

[SkyFan]

Found it :D

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Kingdom to Set Up High-Tech Zones - KSA



Arab News - 19/04/2005

RIYADH, 19 April 2005 — In a pioneering move, the Kingdom's first Integrated Technology Zone will be established in the Eastern Province setting the stage for the manufacture of high technology products in Saudi Arabia.

A spokesman of the newly established Saudi Organization for Industrial Estates and Technology Zones (SOIETZ) told Arab News that the first technology zone will come up in the Eastern Province on a site measuring more than 3.5 million sq. meters.

He said the Dammam Technology Zone (DTZ) is intended to cluster high-tech industries and knowledge-based enterprises that specialize in energy, environment, advanced petrochemicals and new materials. The project is expected to jump-start many technology zones in the Kingdom.

The spokesman said that once the master plan has been drawn up, SOIETZ will float tenders for the development and operation of the DTZ project to the private sector on the basis of build-operate-transfer (BOT). Allocation of sites will be done on the basis of bidding, for which the date of submitting tenders will be announced both in the local and international media.

SOIETZ is currently engaged in drawing up its master plan and also doing value engineering for the various projects. This will give them an idea of the kind of technology zones to be established.

Tenders will be invited only after these studies are completed.

Technology zones in the Kingdom are considered a new investment vehicle for local and foreign investors and will be the gateway from which the Kingdom could launch its high-tech industrialization program.

Asked about the features of the technology zones, he said they will offer advanced infrastructure and value-added services that are needed by high-tech industries and will be constructed on lands either belonging to SOIETZ or on privately owned lands after being licensed by it.

The spokesman said the development and operation of the DTZ will be on BOT basis. A distinctive feature of DTZ will be its zoning. Thus, industries related to IT, environment, energy and petrochemicals will be segmented in line with modern industrial management practices.

In this respect, the format seems to be similar to that of Dubailand, where high-tech industries in different fields have been zoned.

Saudi Arabia is an import market worth around $31 billion a year, which represents a great challenge and promising opportunity. Consumers with high disposable income characterize the Saudi market. In addition to its indigenous wealth and central location in the Middle East, the Kingdom is also strategically placed to take advantage of worldwide trading opportunities, particularly in Asia, Africa and Europe.

Given that almost three-quarters of the Kingdom's population is under 30, it has become a prime market in the Middle East for a variety of consumer products and imported goods, media and educational materials, and services in the financial, health, IT, retail, leisure and property sectors. The establishment of DTZ would seem to herald a significant drive toward import substitution in the high-tech field.

[Olive touch]

SkyFan you are fast :D, thanks to Hijazzy because he got all the magical motivation ;).

[Olive touch]

Interesting cartoon got it from Al Watan Saudi newspaper.

~The idea of the cartoons~ Lack of studying people’s needs.

http://www.alwatan.com.sa/daily/2005-04-19/Pictures/caricature/1904.MIS.p36.n36.jpg

Translation:

At the top: The population of Saudi Arabia is approximately 23 million
people.

Under the lady is saying: (And we still have same traveling rout
system since so long)

Down in the crowd: (And our planes number never increases since that
time)

[huit]

Source: http://www.arabnews.com/?page=6&section=0&article=77382&d=6&m=2&y=2006&pix=business.jpg&category=Business

New Private Airline Set for Takeoff

RIYADH, 6 February 2006 — The new Saudi private airline — with the brand name, Sama (‘to rise high’) — will be up and flying by the summer. It will cover all the routes in the Kingdom as well as those in the Gulf and North Africa.

This was announced at a press conference by Prince Bandar ibn Khalid Al-Faisal, chairman of Sama, who said the paper work relating to the licensing procedure was proceeding smoothly. Among those present were Andrew Cowen, chief executive of the management team, Sudeep Ghai, chief commercial officer, Michael Coltman, chief operating officer, and Michael Williams, non-executive director.

Sama will operate Boeing 737-300 aircraft with an economy class configuration in line with the prevailing trend seen in low-budget airlines.

Prince Bandar said the management team brings with it a wealth of experience in operating low-budget airlines in Europe and the United States. The airline’s brand name was carefully selected to reflect its Arab identity. The final choice was in favor of Sama, which, as a verb, means to “tower up or to become elevated.”

It was also disclosed that the company has begun the recruitment process. Some 350 employees will be hired by the end of this year, with the work force targeted to reach 1200 by 2010. There will also be job opportunities for women. While the majority of the work force would be Saudis, foreigners would also be hired on the basis of their experience and skills.

Those interested have been asked to submit their CVs via their website, www.flysama.com. The applications should be in English in line with the mandatory requirements of all airlines.

Asked about the growth potential, Cowen said it was enormous in the context of a highly sophisticated market. “There are 400 million consumers across the Middle East and North Africa. It’s a market that is relatively under-served in terms of air services. At the same time, there is a huge demand for growth if one goes by Saudia’s fleet expansion program. The fare structure that we are going to offer should result in a significant growth in traffic volume.”

According to official statistics, the total number of arriving and departing passengers in the Kingdom stood at 34.261 million in 2004.

The growth rate in the air traffic during 1995-2004 surged by 28 percent. The Jeddah-Riyadh sector emerged as the largest domestic sector in the Kingdom with 1,123,000 passenger movements in 2004. As many as 4.8 million outbound trips were made by Saudis in 2003, while the number of tourist arrivals in the Kingdom was 7.1 million during the same period.

Prince Bandar, who is also the chairman of Investment Enterprises Ltd., the holding company, said they have signed a contract with Mango Aviation Partners, a British firm that specializes in the set-up and management of low fare airline operations. It will act as a consultant to their project.

Asked if the new company, capitalized at SR200 million, would go public with the flotation of an IPO (initial public offering), Prince Bandar said there were no plans for an IPO in the near future. However, it could be an option at a later stage.

As for maintenance, he said “Sama is negotiating with Western aircraft maintenance firms that specialize in servicing low-fare airlines.

These are organizations with worldwide experience in the provision of maintenance services to airlines and have unrivalled reputation for excellence.”